Renewable Energy Systems for Demand-Side Management in Industrial Facilities

Abstract

Abstract Due to high energy usage and power demand in industrial facilities, demand-side management (DSM) can simultaneously yield substantial energy cost savings for the facility and reduce the load on the power grid. There are many means of DSM, the most common being peak clipping, which is easily done with renewable energy systems and other power-generating devices. In this work, renewable energy systems (RESs) are critically reviewed and compared based on their application to industrial demand-side management (IDSM). Specifically, the RESs reviewed herein include photovoltaics, wind turbines, geothermal, and hybrid renewable energy systems. These devices are introduced, followed by a discussion of their advantages, disadvantages, and feasibility for use in IDSM. Most importantly, the reduction in the carbon footprint of power generation plants resulting from the use of RESs for IDSM is investigated. Comparisons are made based upon rated power, capital costs, O&M costs, levelized cost of energy, and the feasibility for use in industrial facilities. Using the values in the cost comparisons, the levelized cost of energy (LCOE) is derived for each device and used in a techno-economic analysis comparing the cost savings for the different RESs for a hypothetical plant.